Prairie canola growers and crushers want their day in court against the
Quebec government, which they say is discriminating against vegetable
oil-based margarine to protect provincial butter production.
But since Quebec gets to appoint one of the people who will rule on the
dispute, and has not yet named a panelist, it is unclear whether the
dispute will be discussed within Canada’s Internal Trade Secretariat.
The matter was originally scheduled to be resolved in November.
“We’re about to find out what kind of teeth this agreement on internal
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trade really has,” said Robert Broeska, executive director of the
Canadian Oilseed Producers Association.
“There’s nothing that compels (Quebec) to play by the rules. There’s
nothing that compels compliance. There are no sanctions. It’s not a
law, it’s a political agreement.”
Quebec is the only province to ban margarine makers from colouring
their product the same as butter. Ontario stopped controlling margarine
colouring in 1997, the date set by the 1994 internal trade agreement to
end the practice.
But even though Quebec agreed to end margarine colouring controls, it
has not done so.
Multinational food maker Unilever is suing the Quebec government over a
shipment of butter-coloured margarine the company tried to move into
the province from the United States in 1998. Quebec seized the shipment.
Ontario took the margarine dispute to the Internal Trade Secretariat in
August. The secretariat was established to be an agency within which
provinces could increase and ease interprovincial trade by resolving
disputes.
Ontario is arguing that Quebec should no longer be allowed to
discriminate against margarine. Ontario’s position is supported by
Saskatchewan, Manitoba and Alberta, where most Canadian canola is
produced and where much oilseed processing occurs.
Quebec cannot be forced to appoint a panelist to help adjudicate the
dispute. But if it refuses to participate, other provinces may take
action against Quebec outside of the secretariat.
No one knows whether this will erupt into an interprovincial trade war,
Broeska said.
He said his group hopes Quebec stops regulating the colour of
margarine. That would improve interprovincial trade and increase the
flow of goods across the country.
“All we’re searching for here is a level playing field,” said Broeska.
“We’re not trying to take anything away from dairy. We just want equal
access for veg-oil.”
Broeska said cleaning up this issue at home would be good for Canada’s
international trading position.
“If we expect our trade negotiators in Ottawa to go to Geneva to seek a
level playing field, shouldn’t we be exemplifying that with domestic
policies that are equitable and fair?”
